Question
Steelcase Inc. is the global leader in providing furniture for office environments. The company uses the LIFO inventory method for external reporting and for income
Steelcase Inc. is the global leader in providing furniture for office environments. The company uses the LIFO inventory method for external reporting and for income tax purposes but maintains its internal records using FIFO. The following disclosure note was included in a recent annual report: |
7. Inventories ($ in millions): |
February 25, 2011 | February 26, 2010 | |||||
Raw materials | $ | 72 | $ | 54.3 | ||
Work-in-process | 15.6 | 13.6 | ||||
Finished goods | 87.6 | 70.5 | ||||
175.2 | 138.4 | |||||
LIFO reserve | (22.6 | ) | (24.7 | ) | ||
$ | 152.6 | $ | 113.7 | |||
The company's income statement reported cost of goods sold of $1,787.3 million for the fiscal year ended February 25, 2011.
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